The tangible book values of the business is used as the current book value.

The growth rate for the next 10 years are assumed to be the same as the average growth rate of the past 10 years. If the growth rate is higher than 15%, we will use 15%.

and for the terminal values, we use 4% growth rate.

Compared with the DCF Calculator, in this page we use the EPS of the last fiscal year as default
earnings, and the average of the first 5-year period and the second 5-year period as the default growth. While in the DCF calculator we use TTM EPS and
10-year compound growth rate as default.

Add Notes, Comments

User Comments

Can someone explain how this list is created? From what I gather, it should be all stocks that have a predictability rating of 4 or higher, along with the highest discount percentage (based on DCF, though sorting by discounted earnings is also available). However, it's clear that there are companies that fit those criteria that are not on the list. The very obvious one is AAPL, which has a 4.5 predictability rating and discounts of roughly 46% and 60% for Earnings and Cash flow, respectively. I've found that AAPL also does not show on the Buffett Munger screener, which apparently screens for predictable companies (again, AAPL meets that criterion) and sorts by P/E-to-5Year-EBITDA Growth (PEG, but with "G" meaning EBITDA growth instead of earnings). AAPL PEG by that measure is .38, which would place it near the top of the Buffett Munger screener if my understanding is correct.

So...now that I can see one company that presumably "should" be on both of these screeners, I'm wondering if a) I simply misunderstand the criteria or b) the screener leaves AAPL and other companies off arbitrarily.

Can someone clarify? I don't particular care whether AAPL is on these lists or not. What concerns me is that the lists are being improperly generated.

Does Gurufocus send a notice when a company is removed from the Undervalued List? I purchased shares of a company that was on the list but then noticed later that it was no longer on the list. I have no idea when it was taken off the list and why.

All businesses have challenges. Competitions, economic cycles and business execution may make businesses deviate from its previous tracks, and business predictability may change. In order to highlight this, we create a feature called Predictability Watch, which means that a predictable business shows sign of deviating from previous predictability. This deviation can be temporary; it can also be permanent.

The star-rating with a red frame shows that the company is on Predictability Watch.

is it really possible that there is not a single undervalued (neither on DCF nor on earnings) predictable company in Europe? seems that LVMH is the "Least undervalued" with +74% overvaluation based on DCF and -20% undervaluation based on earnings...
Are European companies that overvalued??

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